With the new FinCEN regulations in place, more U.S. Financial Institutions just became subject to stricter AML requirements.
Gregory Vint, September 22nd, 2020
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For several years, almost all U.S. financial institutions have been subject to strict AML compliance requirements. Failure to follow these requirements can have severe consequences - including loss of an institution's ability to conduct business. However, some financial institutions have not been subject to these requirements. Now with new FinCEN regulations in place, the situation is changing.
Until now, over 500 banks, savings associations, credit unions, and trust companies without a Federal regulator were exempt from these requirements. But the Financial Crime Enforcement Network, FinCEN (FinCEN), announced that next year these institutions must have an AML program appropriate for the institution's size and type of business.
One requirement for a strong AML program is a process to verify the identity of both retail customers and beneficial owners of business customers, a Customer Identification Program (CIP). This may not be much of a burden for institutions that meet their customers in person, but with more and more financial transactions taking place in a digital environment, regulators will expect these institutions to have digital solutions to meet this challenge. Veriff provides this solution.
Veriff offers state of the art, leading technology to verify identities quickly and accurately. According to the FinCEN announcement, many of these institutions are small. Also, FinCEN expects the new AML processes to require 30 or 40 minutes to complete. Identity verification from Veriff can help minimize this time.
In addition, Veriff can support an institution's compliance requirements by offering support from due diligence through examination so the CIP portion of the AML program can be implemented well before the compliance deadline.
Compliance programs can be costly for financial institutions. Veriff is a cost effective solution for meeting this new regulation.
So, would it work for you?
Take a closer look at our verification process, and chat to our sales team to learn more about how it could help you welcome more customers, get compliance and fight fraud all at once.
Veriff has been awarded certification against the ISO/IEC 27001:2013 standard
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The actual process of monitoring transactions depends on the services your business provides. However, generally speaking, in order to monitor financial transactions, a company will create a rules-based system that’s based on their needs.